senate Bill S5643A

2013-2014 Legislative Session

Relates to the cost effectiveness of consultant contracts by state agencies

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 10, 2014 print number 5643a
amend and recommit to finance
Jan 08, 2014 referred to finance
May 31, 2013 referred to finance

Bill Amendments

Original
A (Active)
Original
A (Active)

S5643 - Details

See Assembly Version of this Bill:
A9698
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Amd §163, St Fin L
Versions Introduced in 2011-2012 Legislative Session:
S7782

S5643 - Summary

Relates to the cost effectiveness of consultant contracts by state agencies; defines "consultant services".

S5643 - Sponsor Memo

S5643 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5643

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 31, 2013
                               ___________

Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to  the  cost  effec-
  tiveness  of consultant contracts by state agencies; and providing for
  the repeal of such provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  intent.  The  legislature  hereby  finds and
declares that it is in the public  interest  to  enact  a  cost  benefit
review  process  when  a state agency enters into contracts for personal
services. New York State spends over $3.5 billion annually  on  personal
service  contracts, over $840 million more than the State spent on these
contracts in SFY 2003-04, a 32% increase.  Despite  an  Executive  Order
that  has  implemented  a post contract review process for some personal
service contracts the cost of  those  contracts  continues  to  escalate
every  year well above the inflation rate. In addition the State Finance
Law does not require state agencies to compare the cost  or  quality  of
personal services to be provided by consultants with the cost or quality
of  providing  the same services by the state employees. Numerous audits
by the Office of State Comptroller as well as a KPMG study  commissioned
by  the  department  of transportation have found that consultants hired
under personal service contracts can  cost  between  fifty  percent  and
seventy-five  percent  more  than state employees that do the exact same
work including the cost of state employee benefits. The Contract Disclo-
sure Law (Chapter 10 of the  laws  of  2006)  required  consultants  who
provide  personal  services to file forms for each contract that outline
how many consultants they hired, what titles they employed them  in  and
how  much  they paid them. A review of these forms show that the average
consultant makes about fifty percent more  than  state  employees  doing
comparable  work.  It  is  in  the public interest for state agencies to
compare the cost of doing work by consultants with the cost of doing the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11164-01-3

Co-Sponsors

S5643A (ACTIVE) - Details

See Assembly Version of this Bill:
A9698
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Amd §163, St Fin L
Versions Introduced in 2011-2012 Legislative Session:
S7782

S5643A (ACTIVE) - Summary

Relates to the cost effectiveness of consultant contracts by state agencies; defines "consultant services".

S5643A (ACTIVE) - Sponsor Memo

S5643A (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5643--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 31, 2013
                               ___________

Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance -- recommitted  to
  the  Committee  on Finance in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend the state finance law, in relation to the cost effec-
  tiveness of consultant contracts by state agencies; and providing  for
  the repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares  that  it  is  in  the  public interest to enact a cost benefit
review process when a state agency enters into  contracts  for  personal
services.  New  York State spends over $3.5 billion annually on personal
service contracts, over $840 million more than the State spent on  these
contracts  in  SFY  2003-04,  a 32% increase. Despite an Executive Order
that has implemented a post contract review process  for  some  personal
service  contracts  the  cost  of  those contracts continues to escalate
every year well above the inflation rate. In addition the State  Finance
Law  does  not  require state agencies to compare the cost or quality of
personal services to be provided by consultants with the cost or quality
of providing the same services by the state employees.  Numerous  audits
by  the Office of State Comptroller as well as a KPMG study commissioned
by the department of transportation have found  that  consultants  hired
under  personal  service  contracts  can  cost between fifty percent and
seventy-five percent more than state employees that do  the  exact  same
work including the cost of state employee benefits. The Contract Disclo-
sure  Law  (Chapter  10  of  the  laws of 2006) required consultants who
provide personal services to file forms for each contract  that  outline
how  many  consultants they hired, what titles they employed them in and
how much they paid them. A review of these forms shows that the  average

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11164-02-4

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